Dow Rohm and Haas

DOW chemical federation The class 2009 was the most active an challenging year for Dow in its whole history. It was the turning point for the transformation to the leading global specialty chemical and innovative materials Company. On April 1 2009 DOW finally completed the skill of specialty chemicals maker Rohm and Haas after octet months fight. On July 10 2008 DOW pronounced to pay $78 per share to buy Rohm and Haas (current stock value on 9 July, $44, 83) because they expected to a greater extent than $7 billion in pretax process from the joint venture, K-DOW, with a state owned Kuwait company.Due to the global financial crisis, the decrease of the oil prices and the governmental range for the deal as too risky the Kuwait Company withdraw their $17. 4 billion volunteer in December 2008. Dow was now unwilling to pay the $15. 3 billion for Rohm and Haas and consequently tried to detention the process. With this situation, the dilemma of DOW was perfect, a global economic me ltdown and a promise which DOW was non able to check because of a deal break. The whole economy changed after the pronouncement in July that the second man-sizedst chemical company would like to by Rohm and Haas.Stock prices of chemical companies increased immense and the shareholder of Rohm and Haas expect a large profit from their shares especially in the ongoing global downturn, pressing the stock values to the bare bone. Rohm and Haas force DOW to blockade the promised acquisition but DOW never got a specific plan how to handle this complex and importantly changed situation. Just an email from the chairman of DOW explained that it would be better to wait till June 2009 in order to finish the deal.After they heard that Dow invested in different other projects it was simply too much for Rohm and Haas, as they could not understand why other deals were made but the acquisition was still delayed, so they started a judicial proceeding to enforce the merger. Rohm and Haas and DOW conducted several meeting to find a way to resolve the situation, but without any mastery and to the great disappointment of Rohm and Haas as their expectations were not met at all. Analysts said It was a CLASH OF TITANS. Finance Projects clinical research Case- DOW Chemical CompanySilke Rahden In terms of the second half of 2008 and beginning of 2009 we notice a dramatically decrease of the DOW stock price. Well, it is in the middle of the financial crisis in the USA but the more important deal which caused the decline was the acquisition of Rohm and Haas, pronounced in July 2008 and finally finished in April 2009. During this period the stock prices slide into free fall/ drop to the pits from $32,52 (July 2008) to $8,81 (April 2009). The absolutely low point was on 30 March 2009 with $8. 30 per share.The main reason for the death point, in addition to the financial crisis, was the finish of the acquisition of Rohm and Haas after eight months up and downs. Income Statement Finan ce Projects Clinical Research Case- DOW Chemical Company Silke Rahden References http//finance. yahoo. com/q/is? s=DOW+Income+Statement&annual http//phx. corporate-ir. net/phoenix. zhtml? c=80099&p=irolstockcalculator&t=Calc&control_type=256&control_ http//crisisexperts. blogspot. com/2009/02/dowrohm-and-haas-acquisition-crisis. html Finance Projects Clinical Research Case- DOW Chemical Company Silke Rahden